DETERMINATION 2000/02
SECTION 20 OF THE FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997
DETERMINATION TO ESTABLISH A SPECIAL ACCOUNT
I, Gavin Back, Senior Adviser, Financial Framework, pursuant to powers delegated to me by the Finance Chief Executive under section 53 of the Financial Management and Accountability Act 1997, determine, for the purposes of section 20 of that Act, that the Department of Employment, Workplace Relations and Small Business – Employee Entitlements Support Scheme Account is established as a Special Account.
I further determine that:
(a) amounts of the following kinds may be credited to this account:
- money that is held in trust for, or otherwise for the benefit of, a person other than the Commonwealth;
- any money appropriated by the Parliament for an outcome of the Department;
- all money received in consideration for any service, benefit, activity, transaction or other matter which is congruent with the expenditure purposes of the account;
- all money paid to the Commonwealth by any person for the expenditure purposes of the account; and
(b) the purposes for which amounts may be debited to the account are:
(1) For payments of outstanding employee entitlements under the Employee Entitlements Support Scheme and related purposes; and
(2) Expenditure directly attributable to the administration of the Scheme.
Gavin Back
Delegate of the Finance Chief Executive
13 March 2000
SUMMARY DETAILS OF SPECIAL ACCOUNT
Department of Employment, Work Relations and Small Business – Employee Entitlements Support Scheme Account.
The purpose of the Special Account is for expenditure directly attributable to the administration of the Employee Entitlements Support Scheme and for payments of outstanding employee entitlements in the event of employer insolvency. Amounts that may be credited to the Account include amounts appropriated by the Commonwealth, and payments from participating States and Territories for the purpose of the Scheme.
Overview
The Financial Management and Accountability Act 1997 was enacted to provide a framework for the management of public money by Commonwealth entities. The Act aims to ensure that public funds are managed responsibly, with proper accountability and transparency. One of the legislative instruments under this Act, Determination 2000/02, establishes a Special Account for the Department of Employment, Workplace Relations and Small Business – Employee Entitlements Support Scheme Account. This Special Account was created to address the specific needs of the Employee Entitlements Support Scheme, ensuring that funds are appropriately managed for the payment of outstanding employee entitlements in cases of employer insolvency and for the administration of the scheme. The determination was made by Gavin Back, Senior Adviser, Financial Framework, on behalf of the Finance Chief Executive, pursuant to the powers delegated under section 53 of the Act. The policy objective is to provide a dedicated financial mechanism to support the objectives of the Employee Entitlements Support Scheme, thereby protecting employees in the event of employer insolvency.
Scope and Application
This legislative instrument pertains to the establishment of a Special Account under the Financial Management and Accountability Act 1997, specifically designed for the Department of Employment, Workplace Relations and Small Business – Employee Entitlements Support Scheme Account. It applies to entities and individuals who engage in transactions that are aligned with the expenditure purposes of the account, such as those who contribute to or benefit from the Employee Entitlements Support Scheme. The account is intended to manage payments of outstanding employee entitlements and associated administrative costs. The geographic reach of this legislation is national, as it applies to the Commonwealth and participating states and territories. It excludes any transactions not related to the specific purposes of the account, such as general government expenditure. Any further application or restrictions of this account may be specified through subordinate instruments, which would detail the specific rules and conditions under which the account operates.
Key Provisions
The legislation establishes the Department of Employment, Workplace Relations and Small Business – Employee Entitlements Support Scheme Account as a Special Account under section 20 of the Financial Management and Accountability Act 1997 (FMA Act) (1). The Special Account is designated to manage funds specifically for the Employee Entitlements Support Scheme, facilitating payments to employees when employers become insolvent and covering administrative expenses related to the Scheme (1).
Entities and individuals governed by this Act must adhere to specific guidelines for crediting and debiting funds within the Special Account. Money that can be credited includes funds held in trust for individuals, appropriations by Parliament, payments for services related to the Scheme, and payments made to the Commonwealth for the account's purposes (2(a)). These funds are intended to be debited for two primary purposes: payments of outstanding employee entitlements and administrative costs directly linked to the Scheme (2(b)).
Failure to comply with the provisions of the Act can lead to various consequences. Although the text does not specify particular offences, breaches of financial management and accountability laws can typically result in both civil and criminal penalties. These can include fines and imprisonment for serious breaches, as stipulated under the FMA Act and other related legislation. The exact penalties would depend on the nature and severity of the breach, but they are designed to enforce adherence to the financial management standards set forth by the legislation.